US Treasury Advisors Weigh Blockchain Insurance Impact

An advisory council to the US Treasury Department met last week to discuss the application of blockchain to the insurance market.

AccessTimeIconJan 9, 2017 at 5:30 p.m. UTC
Updated Sep 11, 2021 at 12:59 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

An advisory council to the US Treasury Department met last week in Washington, DC, to discuss the application of blockchains in the insurance market.

While the discussion itself was relatively brief (taking place in the middle of a nearly three-hour meeting), it did offer a window into the perspective being taken by some of the stakeholders on the council, as well as the government department itself.

Matt Higginson, an associate partner for management consulting firm McKinsey, led a presentation at the hearing during which he offered an expansive view of the technology as well as a bird's-eye view of the insurance industry’s experimentation with blockchain to date. McKinsey released a report on its insurance industry findings last summer.

One key takeaway – for now, is that many insurers remain in that testing phase. The past few months have seen a range of initiatives launched by insurers, particularly based in Europe, centered around collaborative efforts and research.

As Higginson told panel members:

"There’s a lot of experimentation going on, zero commercial grade. And when we look at what applications they’re being used for today, the biggest are in the reduction of risk and cost."

During a brief question-and-answer session, panel members asked about areas like competition among insurers in a blockchain environment, as well as the steps taken to shore up privacy among network stakeholders.

On that last point, Higginson went on to say, is that the technology’s nature leaves control of information in the hands of those who are supposed to have it.

"If I don't know where to look, I don't know where to find it,” he said. "You need the right cryptographic key to go look at the right information."

Image via FACI/Treasury

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.